COSCO Shipping Expands Bulk Carrier Fleet
Chinese state-owned shipping giant COSCO Shipping is making significant strides in its dry bulk newbuilding initiative. The company has announced plans to construct up to eight Newcastlemax vessels at its group yard, COSCO Shipping Heavy Industry Yangzhou. This move is part of COSCO’s broader strategy to enhance its shipping capabilities and meet the growing demand for bulk transportation.
Newbuilding Initiative Details
The recent deal, whose value remains undisclosed, includes three firm orders and five optional vessels. Each of these Newcastlemax vessels will have a capacity of 210,000 deadweight tons (dwt) and will be operated by COSCO Shipping Bulk. This expansion is crucial for COSCO as it seeks to strengthen its position in the dry bulk market. The vessels are designed to be methanol- and ammonia-ready, reflecting the company’s commitment to sustainability and compliance with future environmental regulations. Deliveries for these new vessels are scheduled between August 2027 and November 2028.
This latest order follows a similar announcement made in August, where COSCO Shipping Bulk ordered eight Newcastlemax vessels from Jiangsu Hantong. Each of these vessels was priced at approximately $80 million, with deliveries also set for 2027 and 2028. The strategic timing of these orders indicates COSCO’s proactive approach to fleet expansion in anticipation of rising global shipping demands.
A Growing Fleet and Future Prospects
COSCO Shipping’s recent activities highlight a robust growth trajectory in its bulk carrier fleet. Earlier this year, the company ordered two 325,000 dwt methanol dual-fuel Very Large Ore Carriers (VLOCs) at COSCO Yangzhou. This was followed by market speculation regarding a newbuilding drive in May, especially after China Merchants Energy Shipping announced its own Newcastlemax shipbuilding program.
In addition to these recent orders, COSCO made headlines with its largest shipbuilding order to date. The company placed an order for 42 bulk carriers worth over $1.8 billion, demonstrating its ambition to dominate the dry bulk shipping sector. Furthermore, COSCO has also secured a deal for ten Kamsarmax newbuilds at Jiangsu Hantong Group, further diversifying its fleet.
As COSCO Shipping continues to invest in new vessels, it positions itself to meet the evolving needs of the global shipping industry. The company’s focus on environmentally friendly technologies, such as methanol and ammonia readiness, underscores its commitment to sustainability. With these strategic moves, COSCO Shipping is set to enhance its operational capabilities and maintain its competitive edge in the maritime sector.
